Time Registration Act to come into force July 2024

On the 8th of November 2023, a legislative proposal was presented in the Danish parliament on mandatory registration of employees' working hours. The legislative proposal has been adopted and will come into force on 1 July 2024.
The image features an illustration related to the upcoming Time Registration Act, effective from July 2024. It depicts a person taking a stretch at their desk, which is equipped with a laptop and documents, symbolizing a break or relaxation moment in an office environment. A large stopwatch and a checklist are also present, highlighting the theme of time management. The overall message conveys the importance of tracking time in accordance with the new legislation.

The Time Registration Act obliges Danish employers to electronically track employees’ daily working hours. This has implications for all Danish employers. The purpose of the Act is to facilitate the tracking of workers’ time to ensure compliance with working hours and rest periods. The employee is responsible for using a time registration system that is “objective, reliable, and accessible”, which entails a statutory obligation to document the registration to ensure transparency towards the authorities. Employers must retain registered information for 5 years after the end of the weekly period, and the employee must have access to this information during the employment relationship.

EU labour directive

With the Time Registration Act, Denmark ensures compliance with the EU’s work directive on companies’ daily time recording. This includes the rule for a maximum working time of 48 hours per week on average over 4 months, and the requirement for 11 consecutive hours of rest within 24 hours. A violation of these rules can trigger penalties in the form of compensations of DKK 25-50,000 to the employer / employee.

There is an upcoming rule in the EU’s Labour Directive that companies in the member states must have a system to record working hours on an accurate and reliable basis. In addition, the system must be accessible for control efforts by the authorities.

As a member state of the EU, Denmark is therefore obliged to implement these rules in Danish legislation, as a result of the EU judgment in 2019.

Exceptions to
mandatory time recording

The main rule is that the time tracking requirement applies to all employees, except for “self-organisers”. The exception includes the requirement to track the daily working time, the maximum weekly working time of 48 hours, rest time, and the night work rules. Self-organisers are employees who have a special relationship with their working time that cannot be measured, determined in advance, or when the employee himself decides his working hours.

Employer’s Duty

It is the employer’s duty to track the daily working hours for each employee. Thereby, the employer must have an overview of working hours, flex, holidays, and absences.

It is the employer’s responsibility that the employees do not work more than 48 hours per week on average within a four-month period.

It is the employer’s responsibility that the employees get 11 consecutive hours of rest outside work within 24 hours. As a result, the employees may not work more than 13 hours in a row.

It is the employer’s duty to ensure compliance with the employment certificates and implementation of the new law. In doing so, the employer must ensure that “self-organisers” are written in the contract, so that these types of employees can be exempted from the time registration rules. Thereby, it is also clear to specify the requirement for time recording on all employment certificates, as this may have consequences in case of violation (potential compensation to the employee of DKK 25-50,000).

 

It is recommended that the employer starts with the mentioned requirements for time registration, as these rules come into force on 1 July 2024.

 

latest news

Navigating Cross-Border Payroll and Social Security Compliance after the EU Court’s C-329/23 Ruling

In today’s globalised economy, businesses increasingly face the challenge of managing payroll and social security for employees working across multiple countries. The complexity of these tasks becomes apparent when workers or self-employed individuals operate in several jurisdictions, raising the question: which country’s social security system should apply? This issue took centre stage in the recent EU Court of Justice case C-329/23, which has far-reaching implications for companies dealing with cross-border payroll and social security compliance.

Crossbord awarded Succesvirksomhed 2024

We are thrilled to announce that Crossbord has, yet again, been honoured with the prestigious Succesvirksomhed 2024 award, recognising our outstanding performance and significant contributions to the business landscape in Denmark.

New Øresund Agreement: Simplified Taxation for Cross-Border Workers and Employers

The new Øresund Agreement between Denmark and Sweden introduces significant updates to the taxation system for cross-border workers. This modernisation aims to simplify tax rules, reduce administrative burdens, and reflect the evolving nature of work, especially with the rise of remote working. Below is a detailed analysis of the key provisions and their implications for workers and employers in the Øresund region.

do you have any questions?

* By checking GDPR Consent, you agree to let us store the information you provided in our system. You can always contact us to permanently remove your data. 

Scroll to Top